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The dataset includes 246 European public tech companies in the sector “Software (System and Application),” many of them listed on secondary markets like AIM Italia, AIM UK, Euronext Growth, Nasdaq First North, NewConnect Poland, MaB Madrid

Milan, 8 October 2019. DHH S.p.A. (“DHH”) (DHH.MI | WDHH21.MI) (ISIN shares IT0005203622 | ISIN warrants IT0005203689), the cloud computing provider of Southeast Europe, announces that, analyzing the dataset created by Prof. Aswath Damodaran (Stern School of Business, New York University), DHH is trading at a 55% discount vs its European peers in the sector “Software (System & Application)”.

Numbers of firms

EV/Sales

EV/Ebitda EV/Ebit P/E

Geography

246

4,25

18,05 24,64

113,20

Europe

1272

5,98

19,89 28,68

145,43

Global

355

6,99

20,21 29,57

276,60

US

DHH 2018

0,87

9,76 30,18

51,39

Europe*

DHH 2018 vs EUROPE

-79,46%

-45,95% 22,49%

-54,60%

DHH 2018 vs GLOBAL

-85,40%

-50,95% 5,23%

-64,66%

DHH 2018 vs. US

-87,51%

-51,73% 2,07%

-81,42%

DHH 2018PF

0,85

6,20 8,05

10,42

Europe

DHH 2018PF vs EUROPE

-80,11%

-65,67% -67,32%

-90,79%

DHH 2018PF vs GLOBAL

-85,86%

-68,84% -71,92%

-92,83%

DHH 2018PF vs US

-87,90%

-69,34% -72,77%

-96,23%

Source: http://pages.stern.nyu.edu/~adamodar/

* Note: DHH is a genuinely multinational business with a presence in 5 countries: 32% of sales are from Croatia; 32% from Italy; 25% from Slovenia; 3% from Switzerland; 8% from Serbia.

The dataset includes 246 European public tech companies in the sector “Software (System & Application),” many of them listed on secondary markets like AIM Italia, AIM UK, Euronext Growth, Nasdaq First North, NewConnect Poland, MaB Madrid.

Taking into account the estimated pro-forma results of DHH the discount vs. European peers is 91%.

The table also includes the data of the 355 public tech companies listed in the US and the ones of the 1272 public tech companies listed in the different world Stock Exchanges, in both cases in the sector “Software (System & Application).”

DHH trades at a 65% discount vs. its global peers and 81% discount vs. its US peers. DHH 2018 refers to the official consolidated results 2018 and 2018PF refers to the official pro-forma consolidated results 2018.

Based on Value Track estimates, DHH is trading at a 63% discount vs. its Italian peers listed on AIM Italia (EV/Sales 2019E).

Company

EV / Sales (x)

EV/ OpFCF (*)

2019E

2020E 2019E

2020E

AIM Italia digital players
MailUp Group

0,9

0,8 19,9

10,2

Prismi

1,7

1,3 12,9

8,8

AMM Group

1,2

0,8 7,8

3,8

Maps Group

1,4

1,1 8,2

6,1

Neosperience

4,2

2,9 18,3

12,4

Average

1,9

1,4 13,4

8,2

DHH 2018 @ Market Price

0,7

0,5 11,7

5,3

Discount % vs. avg.

-63,16%

-64,29% -12,69%

-35,37%

DHH 2018 PF @ Market Price

0,7

0,5 6,3

4,0

Discount % vs. avg.

-63,16%

-64,29% -52,99%

-51,22%

Source: Value Track estimates

The table includes data about 5 small-medium sized companies listed on AIM Italia stock market involved in digital businesses.

DHH Financials

 

 

2018

2018PF

Revenue

€ 5.969.739,00

€ 6.162.905,00

EBITDA

€ 534.059,00

€ 840.771,00

EBIT

€ 172.639,00

€ 647.021,00

Net profit

€ 101.388,00

€ 499.837,00

Net debt

€ 2.604.474,00

Information
Shares

1.488.550,00

Price

5,25

Market Cap

€ 7.814.887,50

EV

€ 5.210.413,50

Multiples

2018

2018PF

EV/Rev

0,87

0,85

EV/EBITDA

9,76

6,20

EV/EBIT

30,18

8,05

P/E

51,39

10,42

Source: management accounts

The consolidated pro-forma p&l includes the full results of the acquisitions made during the 2018, while the official consolidated p&l includes only the pro-quota results after the acquisition date of the new companies. Furthermore, all direct and indirect costs related to being a company publicly listed on the Italian Stock Exchange have been deleted in the pro-forma consolidated p&l, together with all direct and indirect costs related to M&A and extraordinary activities.

The consolidated pro-forma has been prepared:

  • to have a comparable representation to the consolidated p&l
  • to have a representation useful to compare DHH to its private peers, which are not listed and don’t afford this kind of costs.

(Market price € 5,25 – ref. September 30, 2019).

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